Germany hint calls for fiscal U-Turn
WSJ economist survey see 33.6% chance of a recession next year
US Wholesale growth plunges to 2016 level
Tough trading conditions out there, with traders probably more focused on closing our positions and assessing what is to come on the risk radar for Q3. Trade-war and Brexit remain the key risks, with talks between US and China expected to resume in September and UK PM Johnson facing increased probabilities of a no-confidence vote.
US Equities extend gains in what looks like a technical short cover from the 2800 level after Monday's sell-off. Key level approaching now for SP500 around the 2900 and 61.8% fib retrenchment. The positive performance comes after the announcement from the PBoC to set a stronger than expected fix, limiting capital outflows from China and soothing markets nerves.
FX experiences another choppy day, with EUR stuck between the 1.1200-1.1280 levels since Monday. The rest of G10 USD counterparts followed similar patters, with the USD Index still trading firm above the 97 level, despite worse than expected US Wholesale data.
Crude rebounds from the 50 area after Opec announcement to extend supply cuts. Gold traded sideways amid lack of fresh catalysts
If you missed the morning briefing from the desk click HERE